Optimal Pricing

Optimal pricing research focuses on maximizing revenue or profit while considering various constraints, such as fairness, customer behavior, and resource limitations. Current research employs diverse approaches including game theory, reinforcement learning (particularly actor-critic methods and deep reinforcement learning), and gradient-based optimization techniques to address dynamic pricing scenarios and incorporate factors like demand elasticity, volume discounts, and Bayesian persuasion. These advancements are improving pricing strategies across diverse sectors, from e-commerce and insurance to energy markets and cloud computing services, leading to more efficient resource allocation and increased profitability.